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DJT Stock Rises as Investors Evaluate Support from Elon Musk and Kamala Harris’ Media Appearances

DJT Stock Rises as Investors Evaluate Support from Elon Musk and Kamala Harris’ Media Appearances
Tesla CEO Elon Musk (R) addresses the crowd while joining former U.S. President and Republican presidential candidate Donald Trump at a campaign rally on October 5, 2024, in Butler, Pennsylvania, the location of Trump's first assassination attempt (JIM WATSON / AFP via Getty Images)
  • PublishedOctober 9, 2024

Trump Media & Technology Group stock (DJT) surged by 18% on Tuesday, achieving its longest rally since June after closing up over 10% the previous day.

This notable increase coincided with investor reactions to a surprise appearance by tech billionaire Elon Musk at a rally for former President Donald Trump in Butler, Pennsylvania, over the weekend, the same location where Trump survived an assassination attempt in July.

Musk, the CEO of Tesla and SpaceX and owner of the social media platform X (formerly Twitter), has openly endorsed Trump ahead of the upcoming election. During Saturday’s rally, Musk asserted that Trump is the only candidate capable of “preserving democracy in America,” warning that this could be “the last election” if Trump does not win.

As Trump continues to face off against Democratic nominee and current Vice President Kamala Harris, Harris has ramped up her media appearances in a bid to solidify her standing in the polls. Her recent engagements include a guest spot on the podcast “Call Her Daddy” and an interview on CBS’s “60 Minutes.” In her conversation with CBS correspondent Bill Whitaker, Harris defended her economic and immigration proposals but faced questions regarding how she would finance them.

Trump, who holds approximately a 60% stake in DJT, has stated his commitment to the company.

“I have absolutely no intention of selling. I love it. I use it as a method of getting out my word,” he said.

Currently, shares are trading around $22, providing Trump Media with a market capitalization of about $4.4 billion, and Trump’s stake is valued at approximately $2.6 billion.

DJT went public on the Nasdaq in late March after merging with Digital World Acquisition Corp. The stock has experienced volatility since its debut, largely influenced by the dynamic political landscape. Last month, DJT shares reached their lowest point following the expiration of a lockup period for insiders, which prevented them from selling or transferring shares for six months. However, Trump’s steadfastness regarding his investment and Musk’s recent endorsement may be bolstering investor confidence.

While some observers note that Trump’s legal challenges could impact the company’s reputation, the stock has regained momentum as he enters the final stretch of the election campaign. Matthew Tuttle, CEO of Tuttle Capital Management, commented on the current perception of Trump, stating, “The perception is that he is now winning,” referring to the former president’s standing in the race against Harris.

As Election Day approaches, the dynamics between Trump Media and the electoral landscape remain intertwined. With the flagship product, Truth Social, serving as a key communication platform for Trump, the stock’s recent performance could signal an increasing investor belief in Trump’s potential to reclaim the presidency.

Despite concerns about its financial fundamentals, including a reported net loss of $16.4 million in the second quarter, DJT’s stock continues to climb as the political climate evolves. Analysts suggest that the upcoming election could be a turning point for Trump Media, particularly if Trump secures a victory, allowing him to leverage the company further in his potential administration.

The relationship between Trump, Musk, and the electoral battle against Harris is shaping the narrative surrounding DJT stock, providing a glimmer of optimism for investors looking to capitalize on the unfolding political landscape.

Yahoo Finance, USA Today, Barron’s contributed to this report.

Written By
Joe Yans